Cash Incentive Payment for Hiring a New Apprentice

It’s been confirmed incentive payments will be made to employers who hire an apprentice with a contract start date between 1st August 2020 and 30th September 2021.

To qualify for the incentive payment, the apprentice must be a new employee and not have worked for the employer within the last six months prior to their contract start date.

However, another thing to remember is that apprentices who have a contract start date between 1st August 2020 and 30th September do not have to be hired as an apprentice, meaning employees who start in your business through normal recruitment channels and meet the eligibility criteria can attract the new hire incentives.

This makes the incentive a beneficial side effect of starting a new team member on an apprenticeship within their first few months of employment.

There is no upper limit to the number of incentive payments an employer can claim, and two levels of payment are provided based on the age of the apprentice. These are set out below:

In the same way existing learner incentive payments are scheduled, the incentive payment for hiring a new apprentice is paid in two equal instalments at month 3 and month 12.

Unlike the current incentive payments, which are managed through your training provider, the incentive payments for hiring a new apprentice is claimed directly through the Apprenticeship Service. Claims can be made from the 1st September 2020.

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